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Auto alternatives for the 21st centuryTue, 03 Mar 2015 19:06:40 +0000en-UShourly1http://wordpress.org/?v=3.9.2Why Don’t Americans Buy More ‘Clean Diesel’ Cars?http://www.hybridcars.com/why-dont-americans-buy-more-clean-diesel-cars/
http://www.hybridcars.com/why-dont-americans-buy-more-clean-diesel-cars/#commentsFri, 08 Feb 2013 16:09:27 +0000http://www.hybridcars.com/?p=53118The market for U.S. diesel cars has been inching upwards, but still remains a small fraction of gasoline-powered cars, and Automotive News today presented a video overview as to why it sees this as so. According to Senior Writer Jesse Snyder, the value is just not there. In a broad overview without naming specific models, […]

]]>The market for U.S. diesel cars has been inching upwards, but still remains a small fraction of gasoline-powered cars, and Automotive News today presented a video overview as to why it sees this as so.

According to Senior Writer Jesse Snyder, the value is just not there. In a broad overview without naming specific models, he observed in Europe more than half of cars sold are diesel – of the “clean diesel” variety. In the U.S. just 3 percent of the market is diesel and about a quarter of these are clean diesel.

In his view, it is not a question of whether they are really “clean” – with all the emission controls now being used they actually are, he says – and consumer objections about issues like the smell of diesel spilled on one’s hands he dismisses as emotional reasons.

No, the sticking point is money, he says. If one looks at the average higher price paid for a diesel car and the average higher pump price for diesel fuel and compares these numbers in both Germany and the U.S., it looks like diesel is a no brainer in Germany, and a tough sell in the U.S.

Snyder’s example figured $2,000 extra to be paid for a diesel – and this is easily in line if one looked at the MSRP of the top-selling U.S. diesel, the Jetta TDI versus a similar as possible gas-powered Jetta.

Source: Automotive News.

Then, looking at this week’s national average fuel prices, Snyder figured a diesel that gets around 30 percent better fuel mileage would save $840 per year at 10,000 miles annually driven in Germany, compared to $150 per year saved in the U.S.

So, goes the reasoning, if Americans only stand to save $150 per year, it will take them around 13.33 years to just break even on their $2,000 extra spent, or 133,000 miles compared to a breakeven point in Germany at 24,000 miles.

Source: Automotive News.

“This is diesel’s U.S. problem,” said Snyder, “Pump prices are less than half of Germany’s and diesel costs more here, not less.”

And we will agree there is undeniable truth within Snyder’s generalizations. Diesel does cost more in the U.S., not less as it does in Germany.

What was not accounted for is whether a driver traveled more than 10,000 miles per year, or whether the vehicle would be kept for long-term ownership. Diesel engines are known to be durable, often said to be more durable than gas varieties, and are famous for racking up odometer readings well in excess of the estimated 133,000 break-even point.

What’s more, for higher mileage drivers, say, traveling 16,000 miles per year, simply following Snyder’s model, it could be around an 8-year break-even point, and even sooner if miles were higher – or if diesel could be found cheaper, or if the price premium paid was less than $2,000 for a given diesel model and a cross-shopped gas model.

This is still not in the no-brainer category as it is in Germany, but it is not as foolish-looking a value proposition as the ending of Snyder’s commentary suggests, when he says of Americans buying clean diesel cars with a sardonic smile, “But hey, after May of 2026, it’s all gravy.”

Other factors in diesel’s favor are these vehicles are, as Snyder says, cleaner than they’ve been in the past, with multiple and sophisticated controls to scrub particulate matter and smell.

So, just as some environmentally minded people now pay a premium for electrified cars, some may feel justified in doing so for a clean diesel purchase.

There are however those who vehemently disagree diesel engines can be made clean at all, and who actively write against the carcinogenic effects of diesel no matter what emissions controls are in place. More on this topic can be found at clean-diesel.org.

Beyond that debate, turbo diesel engines are known to provide excellent tractability with high torque off the line, and combined with the potential for excellent durability, do present their own unique benefits.

It is true though, there are fewer diesel filling stations in America, and diesel does come at a price penalty, so this does keep many people at bay after a quick look at the scenario that Snyder correctly says does not look as good as it does in Germany.

In sum, we cannot agree with any implication that diesel cars make hardly any sense at all, and for some people they could be the best option. Like other alternative-tech vehicles fighting against an entrenched mentality and paradigm, diesels are a more qualified decision individuals will need to look at more closely to determine whether they really make sense for them.

]]>http://www.hybridcars.com/why-dont-americans-buy-more-clean-diesel-cars/feed/0December 2012 Dashboardhttp://www.hybridcars.com/december-2012-dashboard
http://www.hybridcars.com/december-2012-dashboard#commentsTue, 08 Jan 2013 17:32:14 +0000http://www.hybridcars.com/?p=51333The HybridCars.com monthly sales dashboard is a collaboration of HybridCars.com and Baum & Associates, a Michigan-based market research firm focusing on automotive issues including the hybrid and electric vehicle market. Overall, the numbers are up – for alternative energy vehicles of all types and for the general U.S. market which saw roughly 14.44 million total sales […]

]]>The HybridCars.com monthly sales dashboard is a collaboration of HybridCars.com and Baum & Associates, a Michigan-based market research firm focusing on automotive issues including the hybrid and electric vehicle market.

Overall, the numbers are up – for alternative energy vehicles of all types and for the general U.S. market which saw roughly 14.44 million total sales in calendar year 2012 compared to 12.73 million in 2011.

As they say, a rising tide raises all boats, but the alternative sectors are rising faster, if not as fast as some would like.

Compared to year-end numbers in December 2011 of 31,100 total units for all makers, hybrid sales for 2012 totaled 43,690 units.

Hybrid share of 3.2 percent in December is the highest since gas prices spiked in March and April of this year, even though gas prices in December were relatively low.

Hybrid share was 3.0 percent in 2012 compared to 2.1 percent in 2011 and 2.4 percent in 2010.

Total Prius sales are 235,000 for 2012, which is the highest ever versus last year of 135,000 and previous high from 2008 of 160,000.

The original Prius “Liftback” for this year is at almost 150,000 units, so new varieties are primarily additive, at least to this point.

It would appear also Ford’s Fusion hybrid is on the rise, the Buick Regal mild hybrid is possibly tanking.

New this year to Dashboard tracking is the lone CNG category which continues to plug away.

As for plug-ins, the cat is definitely out of the bag, and more vehicles are pending. In December 2011, we recorded just four models for sale in the U.S., and only the Leaf and Volt sold in significant numbers – 954 units and 1,529 units respectively that month; and year-end total for the Leaf was 9,674 units, and the Volt sold 7,671 units in 2011.

Total plug-in cars recorded sold in calendar year 2011 – not including from Tesla that does not routinely report numbers – was 17,813 units.

In calendar year 2012, we’re counting 11 plug-in makers – including estimates from Tesla. Uncounted are numbers from Fisker and Coda which are limping along, but definitely adding some vehicles to the population of plug-in vehicles.

Total recorded calendar year plug-in sales are 53,172, or – if you want to compare apples-to-apples and delete Tesla which was selling but not counted last year – 50,772 units.

This is a decent jump above 17,813 units counted but not quite ready to take over the mainstream vehicle world just yet.

Noteworthy also is plug-in share has been consistent over the last three months at 0.6 percent, which represents highest rate to date vs. 0.4 percent for year.

As for diesel sales, these are also up somewhat and with more models in the pool as well and more pending.

In calendar year 2011, the U.S. market bought 101,624 “clean diesel” cars. This does not count diesel light duty trucks. This year the number of “clean diesels” rose to 125,522.

Diesel share is consistent at 0.8 percent in December and in 2012 and 2011, but will rise in 2013 as the Jeep Grand Cherokee and Chevrolet Cruze diesel will be introduced.

The Passat diesel is probably in short supply as gas powered vehicle sales are going up, but diesel sales are relatively steady.

December 2012 Hybrid Car Sales Numbers

Hybrids sold in the U.S. (December 2012): 43,690Hybrid Take-Rate: 3.23%